Study
| EST. READ TIME 1 MIN.Canadians in every province will pay more than $1,300 per person in 2022-23 on government interest costs amounting to $68.6 billion
Federal and Provincial Debt-Interest Costs for Canadians, 2023 Edition
Summary
- In recent years, deficit spending and growing government debt have become a trend for many Canadian governments. Like households, governments are required to pay interest on their debt.
- In aggregate, the provinces and federal government are expected to spend $68.6 billion on interest payments in 2022/23.
- Residents of Newfoundland & Labrador face by far the highest combined federal-provincial interest payments per person ($2,727). Quebec, Canada’s second most populous province, is the next highest at $2,110 per person.
- The federal government will spend $34.7 billion on debt servicing charges in 2022/23, which is more than what the government expects to spend on child care benefits ($29.4 billion) and employment insurance benefits ($24.8 billion).
- Ontarians are projected to spend $27.0 billion on combined federal and provincial interest costs in 2022/23, which is nearly equivalent to the amount the province will spend on hospitals this year.
- Meanwhile, total expenditures on interest costs for Albertans ($6.7 billion) is more than what the province will spend on physicians this year. Combined federal-provincial interest costs for British Columbians ($7.4 billion) are roughly equivalent to what the province expects to spend on its social services this year.
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Jake Fuss
Director, Fiscal Studies, Fraser Institute
Jake Fuss is Director of Fiscal Studies for the Fraser Institute. He holds a Bachelor of Commerce and a Master’s Degree inPublic Policy from the University of Calgary. Mr. Fuss has written commentaries appearing in major Canadian newspapers including the Globe and Mail, Toronto Sun, and National Post. His research covers a wide range of policy issues including government spending, debt, taxation, labour policy, and charitable giving.… Read more Read Less…
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